The electric car and battery giant is a leader in recent efforts by Chinese automakers to expand their markets abroad, efforts that are increasingly threatened by thorny trade disputes between Beijing and the West.
The company revealed BYD It reported operating revenues of 201.1 billion yuan ($28.2 billion) during the third quarter, according to a statement published on the Hong Kong Stock Exchange, an increase of 24 percent over the same period last year.
The Shenzhen-based company’s quarterly revenue figure exceeded for the first time that of the American electric car company Tesla, which last week recorded $25.2 billion in its third-quarter revenue disclosure.
The statement showed that BYD’s net profit during that period amounted to 11.6 billion yuan ($1.6 billion), an increase of 11.5 percent over the third quarter of last year.
Tesla’s forecasts have come under increasing scrutiny after cutting vehicle prices over the past year or so in response to growing offerings of electric vehicles from other companies — including BYD.
But last week, Elon Musk’s company announced a third-quarter profit of $2.2 billion, an increase of 17 percent over the same period last year.
The Chinese company that adopts the slogan “Build Your Dreams” is the most prominent electric car manufacturer in China, the largest automobile market in the world.
The initial rapid growth in sales of BYD and its peers in its home market was partly facilitated by generous government subsidies. But the European Union said heavy government support for Chinese companies led to unfair competition. An EU investigation concluded that Beijing’s subsidies weaken the chances of European competitors.
On Tuesday, the European Union announced the imposition of additional customs tariffs of up to 35.3 percent on Chinese electric cars, in a move that Trade Commissioner Valdis Dombrovskis described as “defending fair market practices and the European industrial base.”
Escalating the battle
Beijing criticized the actions Wednesday, saying it had filed a complaint with the World Trade Organization and pledged to “take all necessary measures to protect the legitimate rights and interests of Chinese companies.”
Earlier this year, the United States and Canada raised tariffs on Chinese electric vehicles to 100 percent.
China aims to sell mainly electric and hybrid models of cars by 2035. Its hopes for achieving this were boosted in July when these vehicles accounted for more than half of total domestic sales for the first time, according to the China Automobile Manufacturers Association.
BYD previously specialized in battery design and production, then diversified its activities into the automotive industry in 2003.
Its latest results were issued at a time when China’s crowded electric car sector is engaged in a fierce price war that is affecting profitability and smaller companies are struggling to stay in the market.
BYD said in its earnings report for the first half of this year that it “effectively dealt with the challenges brought by intensified industrial competition.”
As the battle intensifies in its home market, BYD is stepping up its globalization efforts, and plans to open factories in Hungary and Turkey.
